Germanys finance regulator issues warning on ICOs

Friday 10 November 2017 10:32 CET | News

The Federal Financial Supervisory Authority (BaFin), Germany’s top finance regulator, has issued an investor warning on initial coin offerings (ICOs).

The German finance regulator said today that investors should be wary of the risks involved in token sales, including “the possibility of losing their investment completely.” Furthermore, the agency added that this funding model is “attracting fraudsters” who may misrepresent their efforts to prospective backers. According to CoinDesk, a more comprehensive guide for investors will be released on November 15, according to authority’s announcement.

Though BaFin didn’t indicate that it might seek enforcement action against any ICO organizers, the agency suggested generally that “authorities taking necessary measures” could result in potential losses for investors in token sales that prove to be fraudulent in nature, the online publication continues.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: Federal Financial Supervisory Authority, BaFin, ICO, cryptocurrency, warning, investment, Germany, Europe, blockchain
Categories: Blockchain & Cryptocurrencies | Cryptocurrencies
Countries: World
This article is part of category

Blockchain & Cryptocurrencies